APOLLO GLOBAL MANAGEMENT

Payroll and Benefits - Powai

April 2020

For Internal Use

Unless otherwise noted, information as of August 2018

Confidential and Proprietary - Not for distribution, in whole or in part, without the express consent of Apollo Global Management, LLC.

It should not be assumed that investments made in the future will be profitable or will equal the performance of the investments shown in this document.

To the extent distributed in the US, this presentation is distributed by Apollo Global Securities, LLC (“AGS”), a broker-dealer registered with the US Securities and Exchange Commission and a member of FINRA.
Payroll in India: Basics, process & more

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What is Payroll?

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What is Payroll?

Payroll is a list of employees who get paid by the company. Payroll also refers to
the total amount of money employer pays to the employees. As a business
function, it involves:

1. Developing organization pay policy including flexible benefits

2. Defining payslip components like basic, variable pay, HRA, and LTA

3. Gathering other payroll inputs (e.g., relocation, employee referral, any bonus payout,
transfers, statutory Holiday working)

4. The actual calculation of gross salary, statutory as well as non-statutory deductions, and
arriving at the net pay

5. Releasing employee salary

6. Depositing dues like TDS, PF, etc. with appropriate authorities and filing returns

In short, we can say that payroll process involves arriving at what is due to the
employees also called as ‘net pay’ after adjusting necessary taxes and other
deductions.

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What are the stages to processing payroll?
A payroll officer needs to do careful planning. There are always ongoing tasks that
need attention and a constant need to monitor changes to taxation, etc. The entire
process can be split into three stages, pre-payroll, actual payroll and post payroll
activities

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Pre-payroll activities
• Defining payroll policy
• Gathering inputs
• Input validation

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Actual payroll process
Payroll calculation

• The validated input data is fed into the payroll system for actual payroll processing
• The result is the net pay after adjusting necessary taxes and other deductions
• Once payroll process is over, it is always a good practice to reconcile the values and verify
for accuracy to avoid any errors

Payroll payout

• Payout is on last working day of the month

• Salary is paid by bank transfer to employee
provided bank account

Post-payroll process
• Statutory compliance
• Payroll accounting
• Reporting
• Statutory compliance in Indian payroll

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Salary Structure in Apollo

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 Apollo - Components of salary structure
Basic Salary – Basic salary is the base income of an employee,
comprising of 35-50 % of the total salary. This amount is fully
taxable.
House Rent Allowance – A house rent allowance is that component
of the salary which is paid to employees for meeting the cost of
renting a home. Salaried individuals residing in rented homes can
claim this exemption and reduce their tax liability
Leave Travel Allowance - Leave travel allowance is eligible for
tax exemption. It is offered by employers to their employees
to cover the latter's travel expense when he or she is on leave
from work. Only covers domestic travel and the mode of travel
needs to be air, railway or public transport
Special Allowances - Special Allowance is fully taxable and is
also taken for the calculation of Provident Fund (PF)
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 Apollo - Components of salary structure
Employee Provident Fund - Is an employee benefit scheme where
investments are made by both the employer and the employee each
month. Employees have two options regarding electing their provident
fund
Employers’
Contribution @ 12%
Employers’
Contribution
Contribution
Employees’
Deduction @ 12%

Employers’
Employees’ Employees’
Contribution @ INR 1,800
Deduction Deduction @ 12%
Employers’
Employees’
Contribution
Deduction @ INR 1,800

Gratuity - Gratuity is a lump sum benefit paid by employers to those

employees who are retiring from the organization. This is only payable
to those who have completed 5 or more years with the company.

Fuel reimbursement - Employee can choose fuel reimbursement if they

provide car papers and actual fuel receipts

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 Apollo - Components of salary structure

Professional
Professional Tax Tax
Is a tax levied on the income earned by salaried employees and
professionals Employers’
Contribution
Employees’

Income Tax

Employers’
Contribution

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Payroll Software

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Payroll in ADP

• Payroll Processing including Full & Final Settlement

• PF, ESI, PT & LWF Compliance
• Payroll Related Expense Management
• Tax Proof Management
• Bonus & Arrears Management
• Employee Self Service Client Self Service

Employee Self Service Module - Employee can login in to the system from their respective computer using their
user name password and view their

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Employee Benefits Highlights
 Insurance
 Medical
 Maternity coverage
 Medical Benefits Abroad
 Dental
 Disability

 Leave Policies
 Sick Leave
 Casual Leave
 Maternity Leave
 Paternity Leave
 Adoption and Surrogacy Leave
 Unpaid Personal Leave
 Compassionate
 Holiday
 Public Holidays

 Benefits Programs
 Adoption Assistance
 Referral Awards
 Internal Mobility Policy
 Educational Assistance Program
 Professional Memberships and Certifications
 Retirement Gratuity Payments
 Provident Fund
 Life Insurance

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Benefits Summary

Category Coverage Apollo Benefits

Insurance Medical Coverage is extended to employees and their families. The definition of family is Employee + Spouse + 3
dependent children up to age of 25 + dependent parents. The sum insured per family is INR 10,00,000. No co-
payments. Pre- existing conditions are covered.

Insurance Dental Dental treatment up to a limit of 'Rs.' 25000/- per employee only within OPD limit (1) Restorative Procedures
including Filling, Root Canal, Caping (2) Tooth Extraction (3) Tooth Replacement, Prosthetic Bridging (4)
Periodontia, Treatment of Gums. Dental treatment exclusions: (1) Routine check Up Procedures (2) Cleaning /
Scaling procedures (3) Treatment for Cosmetic purposes (4) Orthodontia

Insurance Temporary Partial Temporary Total/Partial Disablement (TTD) 2% of S.I. Or Rs.10,000/=per week or actual salary whichever is
Disability less.

Insurance Insurance - Sum Insured 1,00,00,000 per covered employee.

Accident/Permanent
Disability Insurance

Insurance Insurance - Critical Overall Corporate Floater Limit- 'Rs.’ 15,00,000. Per Family Limit: 'Rs.’ 15 L. It is not restricted to just critical
Illness illnesses but cannot be used for maternity and related claims.

Insurance Insurance - Rs-75,000-1,25,000 for Normal and C-section respectively for First 2 children
Maternity

Insurance OPD OPD Per Family is covered subject to a maximum of Rs. 35,000 Claims pertaining to each Insured can be lodged
(outpatient only 4 times during the Period of Insurance. The Company shall not receive any claims prior to completion of 90
department) Policy days of the commencement of the Policy. Claims under this Benefit shall be payable only on Reimbursement
basis. No claim shall be admissible under this Benefit 30 days after. OPD Shall cover Consultation / Diagnostics /
Physiotherapy / non- allopathic (alternate medicine)

Leave Leave Policy All full-time employees of the Company are entitled to 24 days paid holiday in addition to public holidays as per
the list of public holidays maintained by the Company.

Leave Short Term Sick Employees are entitled to a maximum of 7 days of paid sick leave in any 12-month period.
Leave

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Benefits Summary

Category Coverage Apollo Benefits

Leave Maternity Leave Female employees are eligible for paid maternity leave pursuant to the Maternity Benefit Act 1961 if they have
worked for the Company for at least eighty (80) days in the twelve (12) months immediately preceding the
expected date of delivery. Company Maternity pay provides 16 weeks if the employee has more than one year’s
service with the company at full pay. Female employees with more than six months' service (but less than one
year of service) will be paid at 50% of the employee's normal rate of pay.

Leave Parental Leave All full-time male employees with more than one year's service will be provided with 2 weeks full paid leave in
the event of the birth of their child. All full-time male employees with more than six months' service (but less
than one year of service) will be provided with 2 weeks' leave in the event of the birth of their child, paid at 50%
of the employee's normal rate of pay.

Leave Compassionate Immediate Family Members – Five Days of Paid Leave Close Family Members – Three Days of Paid Leave
Leave

Leave Adoption Leave Female employees are eligible to twelve (12) weeks' paid adoption or surrogacy leave pursuant to the Maternity
Benefit Act 1961. All full-time employees with more than one year's service will be granted two (2) weeks' paid
adoption leave in the event of the adoption of a child. All full-time employees with more than six months'
service (but less than one year of service) will be provided with two (2) weeks' adoption leave in the event of the
adoption of a child, paid at 50% of the employee's normal rate of pay.
In circumstances where the employee is expected to be the primary caregiver following the adoption of the
child, the Company may in its discretion extend the period of adoption leave to sixteen (16) weeks in total
provided the employee has at least one year's service with the Company.

Others Tuition Assistance Full time employees are eligible for participation in the Educational Assistance Program as long as the courses
Program are job related. Apollo will reimburse up to a maximum of US $5,000 per year incurred for continuing education
through an accredited program that offers growth in an area related to his/her position or might lead to
promotional opportunities.
Retirement Retirement - Employees who have completed five years of continuous service with the Company become eligible for payment
Gratuity of gratuity when they retire from, or otherwise leave the Company or on death or disablement due to accident
or disease. For the purposes of this act, the age of retirement is considered by the Company to be 60. Payment
is calculated as follows, for every completed year of service or part thereof in excess of six months, at the rate of
fifteen days' wages based on the basic salary last drawn by the employee. Fifteen days' basic salary shall be
calculated by dividing the monthly salary last drawn by twenty-six and multiplying the quotient by fifteen. The
amount of gratuity payable to an employee shall not exceed Rs.10,00,000 (Rupees ten lakhs).

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